Finance: The Governing Laws of Business and Investing

  • In the same way, astronomy teaches us about the laws that govern the universe, finance theory teaches us about the rules that govern business and investing.
  • In the world of math and science, 1+1 always equals 2. That’s not the case in the world of business and investing.

The Big Concepts

Time Value of Money

Risk Reward

Capital Structure

Trade-off Theory

Cost of Capital

Net Present Value